Tidewater Inc (TDW)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 302,455 | 135,847 | 14,882 | -108,202 | -173,505 |
| Interest expense | US$ in thousands | 72,967 | 48,472 | 17,189 | 15,583 | 24,156 |
| Interest coverage | 4.15 | 2.80 | 0.87 | -6.94 | -7.18 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $302,455K ÷ $72,967K
= 4.15
The interest coverage ratio of Tidewater Inc indicates the company's ability to meet its interest obligations with its operating income.
From the provided data, Tidewater Inc's interest coverage ratio has shown a significant improvement over the years. In December 31, 2020 and 2021, the company had negative interest coverage ratios of -7.18 and -6.94 respectively, indicating that the operating income was insufficient to cover the interest expenses.
However, there has been a positive turnaround in the company's financial performance since then. By December 31, 2022, the interest coverage ratio improved to 0.87, showing that the company's operating income was able to cover its interest expenses nearly one time.
In the following years, Tidewater Inc's interest coverage ratio continued to increase, reaching 2.80 by December 31, 2023, and further improving to 4.15 by December 31, 2024. These positive trends suggest that the company's ability to meet its interest obligations has strengthened, indicating a healthier financial position and potentially lower financial risk.
Peer comparison
Dec 31, 2024